The Australian Energy Council (AEC), the peak body for energy generators and retailers, says it supports government initiatives that improve energy affordability for consumers, but believes the Solar Sharer Offer is a missed opportunity to deliver broader benefits.
Australian Energy Council Chief Executive, Louisa Kinnear, said while the Government had taken on board some industry feedback, the current design means many customers are unlikely to see meaningful savings.
While welcoming the intent behind the offer, the AEC is concerned that the design has been rushed, limiting its effectiveness.
"We support initiatives that help make energy more affordable for consumers, and we respect that this offer is well-intended.
"However, there is still more work to be done to ensure it delivers the greatest possible benefit for customers."
Ms Kinnear said the offer may benefit customers who are able to shift their energy use into the free daytime period, but for many households, the savings will be limited.
"For customers who can shift their energy use into the middle of the day, this offer could deliver some benefit. But for those who are unable to change when they use electricity, they are unlikely to reduce their energy costs."
The AEC said for this offer to work effectively, further reform to network tariffs was required to better reflect how consumers use the system and deliver fairer outcomes for both customers and retailers.
"For this offer to be effective, network tariffs need to align with the free energy periods, which is not part of the current offer design. Without this change, there is a risk that energy charges outside the free window will be significantly higher, which may disadvantage some customers.
"We will continue to engage with government on a solution that works for consumers and retailers alike," Ms Kinnear said.
"However, we are concerned that the offer has been rushed, meaning its full potential benefits for consumers may not be realised and that it puts pressure on the industry to implement a complex product in a very short timeframe.
"As it stands, this offer is likely to appeal to only a limited number of consumers," she said.
"If the government was willing take a bit more time on the design and implementation of this offer, it could have a much greater impact and deliver better outcomes for more Australians, but for now, we believe this is a missed opportunity."
The AEC said it looks forward to continuing to work with government to improve the offer and ensure it delivers meaningful, long-term benefits for energy customers.
About the Australian Energy Council
The Australian Energy Council (AEC) is the peak body for energy retailers and generators operating in competitive markets.
Our members generate and sell energy to over 10 million homes and businesses and are committed to delivering a reliable, affordable and decarbonised energy system for consumers.
The AEC supports net zero by 2050 and recognises the electricity sector's role in reducing Australia's emissions. Our members are major investors in renewables, firming and storage technologies that are critical to ensuring customers continue to receive reliable and sustainable energy supply as we navigate the energy transition.
